Financial cost is that cost which is incurred by the business to arrange finance for business like interest expenses or floatation cost etc.
The selection of an inventory costing method has no significant impact on the financial statements. true or false
GAAP does NOT preclude use of variable costing for external financial reports. The only place the literature addresses this question is in ARB (Accounting Research Bulletin #4) which states that the exclusion of all overhead from inventory is unacceptable. Variable costing does not attempt to exclude overhead associated with the production of product, i.e. variable overhead. But it does exclude the cost of providing productive capacity. It is odd that in its discussion of the current standard for segment reporting that the FASB said that external users of financial information should received data prepared on a basis consistent with that used by management for decision making. Since it is widely accepted that variable costing is useful to management, can this statement by the FASB be consider an endorsement of variable costing in the financial statements of companies which use it internally?
Activity-based costing.
H J B. Taylor has written: 'Notes on financial and costing statements'
Yes it is!! Post costing, means analysis of actual information as recorded in financial books. It is accurate and is useful in the case of cost plus contracts, where price is to be determined finally on the basis of actual cost.
Job Order Costing Operation Costing Normal Costing Actual Costing Standard Costing Kaizen Costing Target Cost
The costing department advises the management to take decisions based on the cost efficiency and capability. The administrative department relates to daily activities like financial planning, billing, record-keeping, personnel, etc. ,
Variable costing is called marginal costing while direct costing is separate concept.
a job costing
outline the characteristics and purpose of: Job costing and process costing
Budgetary Control is projection of financial accounts and std. costing is a projection of cost accounts. Variances are shown in total in thhe former and a detailed analysis of variances is done in the latter. In std. costing, cost data ior each activity is pre-determined based on normal level of operaion.
Labour costing. Material costing